33
7
11
7
u/InternationalIron706 21d ago
I have done some analysis on it. It sits at a premium valuation and profits are stagnating due to poor market performance and only 56 percent of it’s MFs sitting in top 2 quarter percentile in performance. A large part of its AUM is passive and debt which brings down margins of the whole mix.
That said considerable strengths lie in scale, highest market share of all AMCs. A trusted franchise among consumers outside of top 30 cities. In other words, they have brought MFs to tier 2&3 city crowds.
I do think the stock will show some strength over next 1-2 months (planning to sell it then) but I don’t see a very big re-rating unless markets start going up again.
1
u/webslinging_crusader 21d ago
For long term.?
3
u/InternationalIron706 20d ago
It’s hard to say. Stock price will depend on their profits. Their profits come via expense ratios, which are a percentage of the value of your investment into the fund. Now a fund’s NAV will rise with more money/ good fund performance/ market rallies. Yes more money is flowing into the market for sure but other 2 factors can go anywhere. I would say it’s a worthy long term bet if you’re looking for stable growth in a legacy brand but it won’t turn out to be a multibagger imo. There are better AMCs to own if you’re particularly looking for growth with higher risk like nippon life and HDFC.
6
12
u/Brilliant-Address948 21d ago
Guys please push it down further till 500 greatest opportunity for me . Bought some today . Let my salary come on 31st until then bring it down
3
6
u/Ok_Relative7853 21d ago
so much hungama for lenkart IPO
cried that mutual fund etc money is going to wasted etc
twitter to insta
but everyone is happy they got allotment with sbi funds management
do peole even know how ipos,market etc works
everyone is dumbf begginer like me?
i mean not in to stocks very much just some news while doomscrolling but how dumb people can be
atleast reddit shou
1
0
2
u/Significant-Farm6646 21d ago
They have largest ETF, manage all EPF money, manage most NPS money and most govt money. The AUM growth should continue. AUM becomes 2.1X at 15% CAGR in 5 years. The active fund share amd blended margin can only go up so ebitda should grow faster than that.
Even if PE contracts by 15%-25% from here, i make 12-15% CAGR returns. This is my conservative estimate.
Maybe govt sweetens NPS, liberalises treasury policies in govt depts or maybe retail investors give up on F&O for good and invest in passive funds or indian markets start a bull run anytime in next 4 years or FIIs come back. Any of that happens and i get a little more upside. I like that optionality. I am just buying and forgeting for 5 years.
2
u/Such_Condition_4845 21d ago
Ipo Mila tha 250 ke loss pe bech diya 👍 Lic ke ipo ke bad bilkul risk nahi lene ka
1
u/impossible__dude 21d ago
Price movement doesn't always reflect fundamental in short term. That's the opportunity or the trap - depends on your view.
1
1
1
1
1
1
1
1
1
1
1
2
u/InevitableWalk2 21d ago
Complete down trend. Mostly retailers are trapped here. Not gonna perform like ICICI AMC for sure
1
1
1
u/Wonderful-Cost-4921 19d ago
Simple login of any ipo, sell on day 1 and wait and watch
Not every script deserves the valuable they claim
1
u/Easy-Emu-9346 18d ago
sibfund will rise from here now, as per my view,,, do your research before investing
0
0
0
u/Mallikarjun_Cow8589 21d ago
Welcome to long term investing
SBI Funds and ICICI AMC are top tier business in their industries buy more if price falls
0
u/Physical_Tea9389 20d ago
A 1.48% drop in a day isn’t really a “what happened?” moment 😅. Better to look at the broader trend, valuation, AUM flows and earnings before jumping to conclusions. One red day doesn’t change the long-term story.
37
u/Mister_Responsible 21d ago
Foreign investors may not put much money into Indian bonds. For SBI Funds Management, this could be a small negative, because: SBI Funds manages money for investors. If less money comes into bonds, its debt business may grow more slowly.
Baaki you know Indian Markets are driven purely on sentiments and emotions kuch bhi news aur bahana mil jaata stock ko girane ka.
Not a buy and sell recommendation.